The impact of economic hardship on pricing strategies and customer perception of value: A case study of a supermarket chain in Port Harcourt, Nigeria.
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Background of the study
Economic hardship exerts a profound influence on pricing strategies and customer perception of value, particularly within the retail sector. In Port Harcourt, Nigeria, supermarket chains are experiencing unprecedented challenges as economic constraints force consumers to re-evaluate their spending behaviors (Eze, 2023). Supermarkets have traditionally relied on competitive pricing to attract price‑sensitive customers; however, the ongoing economic pressures have compelled these establishments to revisit their pricing models (Ogun, 2024). The perception of value becomes paramount in such environments, as consumers weigh the quality and affordability of products more critically. Recent studies indicate that during economic downturns, even minor pricing adjustments can significantly affect consumer satisfaction and loyalty (Eze, 2023). In response, supermarkets are experimenting with innovative pricing strategies, such as dynamic pricing and promotional discounts, in an effort to balance profitability with customer retention (Ogun, 2024). This study investigates how economic hardship influences both the pricing strategies adopted by a supermarket chain and the resultant customer perception of value. By analyzing consumer behavior and market responses, the research aims to provide actionable insights for retailers navigating challenging economic climates (Udo, 2025).
Statement of the problem
Supermarket chains in Port Harcourt face significant obstacles in developing pricing strategies that sustain customer perception of value amid economic hardship. Fluctuating consumer incomes and heightened price sensitivity have made it difficult for retailers to set prices that are both competitive and profitable (Eze, 2023). The challenge is compounded by the need to balance cost-reduction measures with the maintenance of product quality and customer satisfaction (Ogun, 2024). Furthermore, inconsistent pricing policies often lead to consumer confusion and a perceived decline in value, which can erode brand loyalty (Udo, 2025). This study addresses the need to understand how economic hardship reshapes pricing strategies and affects customer perceptions, with the aim of providing recommendations for achieving a sustainable balance in a volatile economic environment.
Objectives of the Study
To analyze the impact of economic hardship on supermarket pricing strategies.
To assess customer perceptions of value in relation to pricing adjustments.
To recommend pricing strategies that sustain customer value perception during economic downturns.
Research Questions
How does economic hardship affect pricing strategies in a supermarket chain?
What is the relationship between pricing adjustments and customer perception of value?
What pricing strategies can maintain consumer value perception amid economic challenges?
Significance of the study
This study is significant as it explores the critical intersection between economic conditions, pricing strategies, and customer value perception in the retail sector. Its findings will assist supermarket managers in Port Harcourt in refining their pricing models to enhance customer satisfaction and loyalty (Eze, 2023; Ogun, 2024). By providing evidence-based recommendations, the study aims to contribute to the sustainability of retail operations during challenging economic times (Udo, 2025).
Scope and limitations of the study
The study is confined to a single supermarket chain in Port Harcourt and examines pricing strategies in relation to customer value perception. It does not extend to other retail sectors or geographical regions.
Definitions of terms
Pricing strategies: Methods used by retailers to set product prices in response to market conditions.
Customer perception of value: The assessment by consumers of the worth of a product relative to its price.
Economic hardship: Periods of financial difficulty characterized by reduced consumer spending and increased price sensitivity.
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